Ethereum (ETH) started a fresh decline below $4,250. The price is now recovering some losses but faces a key hurdle near $4,400.
Ethereum Price Faces Uphill Task
In the last technical analysis, we saw a fresh decline in Ethereum below $4,500. The bears remained in action and pushed the price below $4,250. Finally, the price spiked below $4,000 and tested the $3,820 support region.
A low was formed at $3,832 and the price is now recovering some losses, like Bitcoin. There was a move above the $4,000 and $4,050 levels. The price surpassed the 23.6% Fib retracement level of the recent decline from the $4,761 swing high to the $3,832 low, but the price still faces a lot of hurdles.
Ethereum is still well below the $4,250 mark and the 50-day simple moving average. The current price action suggests that the price could struggle to continue higher. On the upside, immediate resistance sits near the $4,200 level.
The first major hurdle sits near the $4,250 zone. There is also a connecting bearish trend line forming with resistance at $4,280 on the daily chart. A close above the trend line might send ETH toward the main hurdle at $4,400 and the 50-day simple moving average.
The 61.8% Fib retracement level of the recent decline from the $4,761 swing high to the $3,832 low is also near $4,400. If there is a clear move above $4,400, the price could drift toward $4,550.
A daily close above $4,550 may perhaps open the doors for a fresh uptrend. In the stated case, ETH could rise toward $4,750. Any more gains above $4,750 level could initiate a larger rally toward $4,880 level. The next key stop for the bulls could be near the $5,000 handle.
Another Decline In ETH?
If Ethereum fails to start a recovery wave above $4,250 or $4,400, there could be more losses. Immediate support on the downside is $4,050. The first major area of interest for the bulls could be near the $3,820 level.
A clear break and close below $3,820 could spark a sharp decline and larger downside correction. In the stated scenario, Ether might decline toward $3,600. The next key level sits near the $3,360 level. If the bulls fail to protect $3,360, the bears might aim for a move toward $3,200. Any more losses might derail the current uptrend and send ETH to $3,020 in the coming weeks.
Overall, Ethereum price is consolidating losses below $4,250 and $4,400. If there is no close above $4,400, the price could restart its decline and drop toward $3,600.